Chapter 17.18


17.18.010    Purpose.

17.18.020    Definitions.

17.18.030    Developer requested special assessment district.

17.18.040    Developer incentive and reimbursement program.

17.18.010 Purpose.

It is the intent of this chapter to provide incentive through reimbursement and access to the City’s special assessment district process and procedures to developers expanding access to public utilities and capital improvements within the boundaries of the City. [Ord. 19-23(S-2)(A) § 5, 2019].

17.18.020 Definitions.

In this chapter, unless otherwise provided, or the context otherwise requires, the following words and phrases shall have the meaning set forth below:

“Benefiting property” means one or more parcel(s) of real property which are adjacent to, will benefit from, or are likely to require connection to a municipal improvement.

“Cost of construction” means the developer’s actual direct cost of constructing a municipal improvement.

“Developer” means an owner of real property who is developing his, her, or its real property.

“Developer reimbursement agreement” means a written contract between the City, as approved by the Council, and one or more developers, which provides for reimbursement of a portion of the costs of construction of a municipal improvement by a developer, and the method for assessing the pro rata share of the costs of construction of a municipal improvement to benefited property.

“Municipal improvement” means water, sewer, electrical, and/or stormwater systems or other capital improvements which have been designed and constructed according to City standards, approved by the City, accepted by the City, and provide potential benefits and/or service to benefited property. [Ord. 19-23(S-2)(A) § 5, 2019].

17.18.030 Developer requested special assessment district.

a. A developer may request a resolution of the Council approving a special assessment district in connection with the construction of a municipal improvement as set forth in HCC 17.02.040.

b. A request for special assessment district initiated by a developer shall be filed on the special assessment district resolution request form, which is available from the City Clerk’s office.

c. The developer’s request must include all information required by the special assessment district resolution request form, including, without limitation, a description of the boundaries of the district requested and the municipal improvement the developer intends to construct or extend, a cost estimate for the improvements to be constructed, the proposed method used to calculate the amount claimed by each record owner of benefited property in the proposed district, the percentage of the improvement cost to be assessed to benefited properties within the district, and the percentage of the improvement cost to be assessed to the developer’s property and/or project.

d. Upon adoption of a resolution of Council finding there is a necessity for the special assessment district identified by the developer in the developer’s application and the initiation of the special assessment district process under this chapter, a developer reimbursement agreement must also be presented to Council for approval. This agreement must include the terms and conditions of the improvement plan and the proposed construction and installation terms by the contractor. [Ord. 19-23(S-2)(A) § 5, 2019].

17.18.040 Developer incentive and reimbursement program.

a. If Council approves the district and the developer reimbursement agreement under the procedures set forth in Chapter 17.02 HCC, and upon completion of the approved municipal improvement in accordance with the City’s standards and acceptance of the same by the City, and only to the extent permitted by law, the City shall transfer any payments received by the City in payment for the assessments within the district. The City will disburse any payments received from property owners in the district to the developer within 90 days from the date the City collects or receives the assessment payment.

b. The City may collect, but is not required to collect, the amounts assessed to any benefited property for the pro rata share of the developer’s costs of construction. The pro rata payment must be paid before any benefited property connects to or uses the municipal improvement. No benefited property is permitted to connect to or use the municipal improvement without first making the pro rata payment. The pro rata payment is in addition to any connection fees, service fees, or other fees that may be charged for connection and/or use of the municipal improvement, or any other fees chargeable by the City under the code for the construction of a particular municipal improvement.

c. The City accepts no liability to collect any pro rata payment from the owners of benefited property, or in the event of nonpayment, to pursue enforcement for nonpayment of any pro rata payment, or to disconnect or remove any benefited property from the municipal improvement for nonpayment of a pro rata payment. The City assumes no liability or responsibility regarding the enforceability of any reimbursement agreement, or the developer’s ability to seek a pro rata payment. To the extent permitted by law, enforcement matters relating in any way to a pro rata payment, or recovery or reimbursement of any costs of construction, shall be the sole responsibility of the private developer. [Ord. 19-23(S-2)(A) § 5, 2019].